Ecopetrol to up exploration, open 80 new wells during rest of 2016

BOGOTA Aug 17 (Reuters) - Colombia's state-owned oil
company Ecopetrol will intensify exploration and the
drilling of new wells through the rest of this year, Chief
Executive Juan Carlos Echeverry said on Wednesday, after
cutbacks following the global drop in crude prices.

The company plans to drill 80 more wells before the end of
2016, bringing its total for the year to 105, Echeverry said
during a call with investors.

Thirty-five of the new wells will be located in the Rubiales
oilfield, while another 35 will be in the Castilla field. The
remainder will come from other areas.

"During these 12 months, we've privileged protecting cash
flow and capital discipline, but going forward with a stable
price that we estimate will be around $50 ... and moving to
prices between $50 and $55 in 2017, we feel now at the company
that we can emphasize promoting reserves and production,"
Echeverry said.

"If there's more cash flow, we can increase drilling."

Drilling will be funded by the company's $3 billion to $3.4
billion budget, which it cut by around $1.8 billion at the
beginning of the year, Corporate Strategy Vice President Maria
Fernanda Suarez said on the call.

Ecopetrol has already secured around 85 percent of its
financing needs for 2016, she added.

Net profit at the company fell nearly 48 percent in the
second quarter to 787 billion pesos ($270.6 million), compared
with 1.5 trillion pesos during the same period of
2015.